Inflation is one of the biggest enemies that your retirement plan is likely to face because money has a time value attached to it. As you grow older, the value of currency decreases due to increase in prices of goods and services. I’m sure you have seen the way inflation grows year after year and makes it a bit difficult to gauge how exactly it will affect you during your retirement years.
Some good news is that if you educate yourself on financial topics and commit to making wise choices throughout the years, you will be looking very good during your retirement years.
What is Inflation?
In very simple words, inflation means a general increase in the prices or goods throughout the years. What it means is that value of one dollar today may differ from the value of one dollar 20 years down the line. In other words, as and when the prices rise over a period of time, each unit of currency can buy fewer goods and services. Inflation is generally measured in percentage. Read More